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Supply Chain Segmentation: It’s Good for You!

Omni-channel retailing may be a blessing and a curse, as increased options means increased strain for both retailers and manufacturers. Admire Moyo writes for ITWeb that organizations must use a segmented supply chain strategy to stay competitive.

Segmentation

Moyo cites Gartner’s definition of supply chain segmentation:

Designing and operating distinctly different end-to-end value chains (from customers to suppliers) optimised by a combination of unique customer value, product attribute, manufacturing and supply capabilities, and business value considerations. In essence, supply chain segmentation is the dynamic alignment of customer channel demands and supply response capabilities optimised for net profitability across each segment.

Right now, retailers are struggling to fulfill customer orders. It may be that they do not have the workforce or the capacity necessary, but whatever the reason, they must be able to adapt to increasing consumer demand. Business-to-business customers too expect more, not wanting to wait long for product deliveries either. Versatility through segmentation is the solution, as the article states that “while a company’s physical assets…  may be the same across all segments, its processes and policies for predicting customer demand and positioning supply can be different from one segment to another.” You can read Moyo’s full article here: http://www.itweb.co.za/index.php?option=com_content&view=article&id=71683:Supply-chains-under-strain&catid=69

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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